Examine the evolution of entrepreneurship

Origin of the concept

Names to Research
Schumpeter
Peter Drucker
Richard Cantillion
John Baptiste Say
Module 1: Objective 4- Characteristics of an entrepreneur
- Creative
- Innovative
- Passionate
- Organized
- Risk taker
- Visionary
- Calculated
- Systematic planner
- Persistent
- Dynamic
- Self-confident
- Assertive
- Self-assured
- Egotistical
- Want to be knowledgeable

Emotional Intelligence

Types of Entrepreneurs
1. Nascent
2. Novice
3. Habitual- portfolio or serial
4. Survival- necessity
5. Lifestyle
6. Social
7. Opportunity
8. Speculative
 Names To Research

1. Schumpeter
Joseph Schumpeter was an Austrian political economist and served briefly as Finance Minister of
Austria. He was best known for his theory relating to innovation, “innovation-originated market
power could provide more effective results than pure price competition”. Schumpeter believed
that the was to introduce successful, well, innovations. The innovation theory of profit claims
that the main function of an entrepreneur is to introduce, well, innovations—which Schumpeter
defined as any new policy that reduces the overall cost of production or increases the demand for
product.

2. Peter Drucker
Peter Drucker was an Austrian American management consultant, educator and author whose
writings contributed to the idea and practical foundations of modern management theory. He
believed that a successful manager needs to understand subjects like psychology, science and
religion and be guided by ethical and moral principles. Drucker encouraged creative rather than
bureaucratic management and insisted that managers should, above all else, be leaders.

3. Richard Cantillon
Richard Cantillon was an Irish-French economist and author. He is credited with the discovery of
economic theory and was the first to fully consider the critical role of entrepreneurship in the
economy. Cantillon described entrepreneurship as pervasive and endowed the entrepreneur with
the most pivotal role. Richard described an entrepreneur as a speculator who conducts all
exchanges and bears risks as a result of buying at certain prices and further selling them at
uncertain prices.

4. Jean-Baptiste Say
Jean-Baptiste Say was a liberal French economist and businessman who argued in favor of
competition, free trade and lifting restraints on business. Say’s law states that the production of
goods creates its own demand. This view suggests that the key to economic growth is not
increasing demand, but increasing production.
Types of Entrepreneurs

1. Nascent Entrepreneurs
People who are engaged in creating new ventures. He is an individual who is in the process of
starting a new business. Refers to an individual who tried to establish a new business venture in
the past 12 months and the new business did not generate positive net cash flow for more than
three months. Can have full-time or part time engagement in the business.

2. Novice Entrepreneurs
These are persons without prior experience in the ownership of a business. For the first time.

3. Habitual Entrepreneurs
An individual has launched or is currently launching several entrepreneurial endeavors in a
parallel fashion. Those who have established, inherited and/or purchased more than one business.

4. Survival Entrepreneurs
Those involved in the informal selling of services and product with a very small profit margin in
order to earn an income for the basic survival of their families.

5. Lifestyle Entrepreneurs
A type of career and business model that an individual can create around the lifestyle they want

6. Social Entrepreneurs
A new, innovative business venture that influences change. They have a specific cause that they
care about and they develop a business model around making a positive impact. Their main goal
is to create lasting social change through business. Non profit organization.

7. Opportunity Entrepreneurs
The point at which identifiable consumer demand meets the feasibility of satisfying the requested
product or service. They discover an opportunity to start a lucrative new business.

8. Speculative Entrepreneurs
A term used to described a type of business venture that involves a higher level of risk than
typical business venture

Evolution of Entrepreneurship

Trade – Nearly 20,000 years ago, entrepreneurship started with trade. Goods were exchanged
between humans for an overall benefit of tribe.

Agricultural revolution – With time, people learned to domesticate plants and animals. Group
of people cultivate food and exchanged it with people who provided valuable goods.

New areas of specialization began to emerge such as Pottery, Carpentry, Wool-making and
Masonry.

Expansion of trade routes – Cities started to appear from 2000 BCE. As population increased,
people developed an idea that they can earn profits by trading between cities and cultures.
Popular trade at that time was of salt, fruits, rice and paper making by China.

Invention of money – The key development in the history of entrepreneurship was shift from
barter system to currency. Paper money acted as medium of exchange and provided a way to
store value.

Beginning of the marketplace – Larger marketplaces became more popular to cater large
population. Banking regulation became more advanced for small businesses and entrepreneurs
could purchase goods from abroad.

Innovation, Mercantilism and Explorers was on the rise at that time. Luca Pacioli formulated
standardized principles to keep track of a company’s accounts.

Machines and Industrial revolution – Shift from small scale to large scale production gave rise
to some of the world’s great entrepreneurs such as J. Morgan and John D. Rockefeller.

Modern Entrepreneurship – Now-a-days entrepreneurship serves as lifeblood of all economies

of the world. Entrepreneurs are encourages to innovate and are valued for their contribution in
the economy.
Entrepreneurial Mindset Includes:

- Dynamics

- Innovative + Creative

- Calculated risk taken

 - Visionary

- Systematic Planner

- No fear of failure

What will drive the entrepreneur?

- Fulfil a need

- Poverty or Unemployment

- See a need or niche

- What to make a change

- Family Background

- Government Regulations

Cultural Diversity

- Race

- Religion

- Demographic

- Ethnicity

- Gender

Emerging Areas

- ICT

- Agricultural / Agro-processing

- Cottage Industry

- Renewable energy

- Fashion

- Hospitality / Tourism
- Entertainment

- Culture

- Staycation